DISCUSSION ON EARLY WARNING BEGINS

The Michigan Legislature recently considered legislation concerning "distressed schools" and creating a process to establish an "early warning system," to avoid state intervention due to financial stress.

Currently there are  48 distressed schools or districts at risk of financial disstress in Michigan. Some districts have a short-term hiccup, while others face long-term issues, such as continued declining enrollments and increased labor costs.  According to Gongwer, the multi-bill package proscribes measures for financially distressed school districts—with advocates noting—doubles the maximum amount the Emergency Financial Assistance Loan Board is authorized to lend troubled districts, revises the loan’s eligibility criteria, eliminates restrictions on the Board’s ability to restructure existing loan repayment programs and removes limitations on the amount of surplus funds that can be loaned to municipalities and school districts over the next six fiscal years.

A number of school officials are opposed to the legislation, arguing that some of the measures’ reporting requirements and criteria are burdensome and possibly redundant, and would actually add to the district’s financial woes.  However, those same school officials should work with a facilitator to engage stakeholders in defining the problem and working in advance of the state stepping in to identify and implement realistic solutions.

By being proactive and engaging your community early on, you can avoid difficult situations down the road. However, acknowledging the problem and engaging others in the solution is a difficult process, one that can be helped by brining in a neutral to guide the discussion and help extract solutions.  

Hey Detroit, It’s Time to Think Differently

Steve Jobs is known for many things…Creating Apple, perfecting Pixar and reinventing Apple. Reinventing Apple was based on Steve Jobs new philosophy based on an ad campaign created by Chait/Day in 1997 -- ”Think Different.” Well, the business and social climate already is going through a transformation, now  it is time for the city, both the mayor and city council to, stop “Believe in Detroit,” and start to, “Think Different.”

While Detroit is not alone in its problems, it is working alone at trying to find solutions. Cities every year have high unemployment, rising pension costs and high health care costs, falling property values and cut backs in funding from the state and federal governments.

Cities now lack the capacity to provide the basic services, its residents rely on.  Today, cities are in a desperate search for capital. In the end, a consent agreement or emergency financial manager is about becoming fiscally sound by either limiting expenses, finding capital or both.

Through the U.S. Conference of Mayor’s Business Council, Mayors are turning to the private sector for support. For example, Newark, New Jersey Mayor Cory Booker recently turned to Class Green Capital, who used creative transactions with real estate owned by the city to help identify funding for both long and short-term needs. Providence, Rhode Island also turned to Class Green Capital.  Companies like GE, Best Buy, Wal Mart, Target and others have corporate foundations set up to fund specific projects.

In January, a group of technology executives launched the “San Francisco Citizens Initiative for Technology & Innovation,” an effort to help make San Francisco the “innovation capital of the world.” While in Detroit, organizations such as TechTown, NextEnergy, Detroit Venture Partners, Compuware Ventures, DTE Energy Ventures, Invest Detroit and others are proving to be a great success, we need to coordinate our efforts and think more strategic.

In addition to making a financial contribution or finding the support necessary to keep certain city services from going away, there are other ways companies can get involved and are. The private sector, as well as labor can lend their muscle and equipment in cleaning Detroit’s parks, abandoned streets and neighborhoods. It is time that we all work together to re-make, re-build and re-invent Detroit, it is about time that we all do it and work at it together.

Who can help Detroit and Michigan Find Resolution Throughout all the Chaos

I am extremely frustrated by how partisan politics has become. In talking with lobbyists and lawmakers about the good old days of lawmaking, in both Washington and Lansing, it used to be that during the day, legislators would fight like crazy for their issues, they would debate and argue for what they thought was right and in the best interest of the ‘people.” And after a hard days work, they would shake hands and grab a drink or have dinner. Not today. In the Michigan Legislature you are lucky if they know each other’s name. In Washington, Members of Congress take their cues from their party leadership and everyone points fingers at the other person to say why they are not making progress. And that is in a non-election year.

So in Washington, you have a highway transportation bill that expired a few years ago that still has not been authorized. The education bill also expired and has not been authorized, leaving a generation behind instead of “no child,” punctuated by an election year that brings little hope of progress to a bitter end, at least and until sometime next year.

The only progress in Washington, D.C. are the Cherry Blossoms, and in Michigan, the only progress is Michigan State University moving into the next bracket.

In Lansing and Detroit we are still discussing bridges and transit. In fact, in 1976, President Gerald Ford offered funds to build a rail transit system in southeast Michigan. Instead, we just got the People Mover and today, we are still talking about the need for regional transportation.

Today, there is a lack of progress in moving forward on the difficult decisions that affect our nation and impact our state. Some would call it an impasse while others just chalk it up to politics. However, these are issues that can be resolved and resolved in a way that preserves the relationships, maintains the political differences and helps move the agenda forward collectively.

The use of ADR processes by the courts and federal government has been widely celebrated as a more efficient and cost effective method of conflict resolution. Mediation is a voluntary, confidential process in which a trained, impartial mediator helps people examine their mutual problems, identify and consider options and carefully consider possible resolutions. A mediator has the experience to bring disputing parties together and help them draw out a successful resolution while preventing an impasse during the negotiations, or otherwise prevent the discussions from breaking down. Unlike a judge or arbitrator, a mediator does not make the decisions nor do they offer solutions. They help separate the politics from the process, help the parties find a common ground, build trust and identify potential solutions to agree on.

Public policy dispute resolution focuses on the resolution of issues affecting the public, such as: Transportation; land use, special education, election districts and healthcare.  With public policy disputes, the issues tend to be a bit more polarizing, emotional and there are often a number of stakeholders from the community, including non-profits and business groups, and governments at a local, state and federal level.

Whether it is a public policy dispute or a dispute between neighbors, the goal of public any dispute resolution is to save money, preserve relationships and take control over the decisions. When it involves a public policy dispute, it is helpful and most effective if it creates the opportunity for all voices to be heard. It is a process being used in the planning process of multiple projects, including economic development projects in Austin, Texas and Salt Lake City Utah.

In any mediation, the first step in the mediation process is to get both parties to agree to use a mediator. That is actually the first agreement both parties make together and we are on the way to developing trust and building a relationship.

While many states have dispute resolution clauses in key legislation or dispute resolution centers at universities, the State of Michigan does not. The ADR Section to the State Bar of Michigan, continues to talk with universities about creating a "Center for Public Policy Dispute Resolution Services," and continues to talk with legislators.  However, since no university has yet to step forward in creating such a center, in part due to funding, The ADR Section is trying to show by example, the benefits of ADR.

The National Policy Consensus Center has found that legislators are becoming problem solvers, facilitators and conveners of issues vital to their state. Yet in Detroit and throughout the State of Michigan, we still cannot accomplish enough to move the state forward.  It is time to rebuild and repair relationships in the City of Detroit and throughout the State of Michigan. It is time the people we elected to lead our government and help move it forward. It is time that they ask for someone, or a team of neutrals to step in and help find resolution throughout all the chaos.

Policymakers can avoid making difficult decisions on controversial issues by creating a process by which public policy disputes can be resolved.  Through a facilitated consensual process, issues such as consent agreements, transit, new infrastructure projects, transit and councils-by-district can be avoided and we can all move on to other issues to help our city, state and nation move forward.

If we just talked earlier and learned about the real issues underlying the bigger ones, than perhaps today, we would be talking more about basketball instead about a bridge, debt ceilings, transit or a consent agreement. It is time we brought in neutrals to help resolve the bigger issues plaguing our nation.

What is our vision for Detroit? And who will take charge in implementing it?

When Kenneth V. Cockrel Jr. was Mayor of the City of Detroit he was often criticized for not having a vision for the City of Detroit. As Mayor for just eight months, running in two elections and trying to restore confidence, faith and trust back into the city of Detroit and office of Mayor following a tumultuous time in Detroit’s history, Cockrel’s vision was short term – Get the city’s finances back in order and help the city of Detroit move forward without looking back at what thrusted him into office as Mayor. At the time, Cockrel became Mayor, not only was our city in political turmoil, but the economic floor fell out from under the nation. The auto industry, Detroit’s main industry was crumbling, jobs were diminishing and the city was still recovering from the scandal that rocked our world.

As Mayor of the Motor City, Cockrel’s priority also was to help our leading industry survive and get off life support, while preventing the City of Detroit from suffering a similar fate.

Just as Mayor Dave Bing is doing now, Ken Cockrel did then, in asking the unions to work with him in collaboration to help weather the economic storm. At the time, Cockrel’s Administration put forth a budget deficit plan that would restore the city’s finances to a level where we would avoid a hint of bringing on an emergency financial manager and also published the city’s finances on line for people to see, view and comment on.

In 2009, Cockrel, in his State of the City address said, the “Key to managing our financial resources is making smart choices.   This includes choices about who we do business with and how we do business with them.”  In Cockrel’s brief tenure as Mayor, his administration reviewed a number of contracts and discovered many areas of mismanagement. In fact, the review of several contracts with banks and other financial services institutions revealed that we were spending over $2 million for services we did not need and immediately terminated those contracts.

In the brief months Cockrel was Mayor he also set in motion the opportunity and ability to create an authority to oversee the expansion of the Cobo Convention Center, paved way for light rail along Woodward Ave., began discussions of merging the two regional bus systems worked to bring green jobs to the city and found ways to put the police back in the neighborhoods.

Just two years after Cockrel served as Mayor, while the auto industry is recovering, Detroit’s financial situation continues to diminish, as do jobs.  Just as people asked for Cockrel’s vision, we need a plan for the City of Detroit. This plan is not just for current Mayor Dave Bing to develop. We need the cooperation of the entire region, including: business, labor, faith based groups and others to come to the table and offer their vision and solutions to help guide the city forward.

It takes leadership, cooperation and collaboration to set us back on the path to prosperity and growth. It is time our business leaders, labor leaders and others to stop being territorial in what they are working on and in the Spirit of Detroit work together to solve regional problems. I understand business groups are talking to each other, but we have been talking for years. It is time to stop the talk and for someone to come forward and take charge of creating and implementing the plan to bring Detroit back.

*This post originally appeared in The Huffington Post in early December, 2011

Public Engagement and Media Relations When City's Are At Risk

The City of Detroit and State of Michigan are at a precarious position as the state looks into the city's finances and talkcontinues about the potential of having an emergency financial manager appointed.

As the talk continues the mood in Detroit has taken a sudden turn back to the "us vs. them" mentality that "only Detroiters can solve Detroit's problems".  To avoid creating an environment that will get in the way of progress and to help build political capital for the Mayor and the Governor, I strongly suggest that as part of the process for triggering a state review of a government's finances, a strategic communications plan and community engagement process should begin simultaneously to create a positive environment to make the necessary changes.  I recently wrote an article on how companies can preserve their reputation in a wake of bankruptcy.  The same strategy applies for a public entity.

For example, before an EFM is appointed or even before the triggers are pulled to start the process, the Governor and his team should be mobilized to the City of Detroit to meet with key stakeholders, such as:

• Business organizations;
• Community development organizations;
• The faith-based community;
• Detroit-based CEOs; and,
• Urban media

To explain why the state "may" jump in to help the city with its financial situation. This is to set the tone and set the record straight as to why we have this process, the steps we have taken thus far (including regular meetings with the Mayor) and what the next steps will be. It also will help maintain relationships and create open channels of discussion and dialogue.

The Governor should also find third party supporters, such as members of the clergy and business leaders, to validate the process to Detroiters so that they know that this is the right choice both the City and the State are making.

Then should the Governor appoint an EFM, along with that appointment, a person that is familiar with the media and political landscape should also be appointed to help the EFM navigate the local political environment and serve as the liaison to the community, as well as be the one to respond to the media and help represent the EFM at various community events.

Community engagement should be a part of the EFM process under the Act. Then having someone outside the Treasury Department respond to the media also can go along way in maintaining relationships in the city's EFMs operate.

Finally, having an EFM come into a community should be seen as an opportunity for a city to experience a fresh start and a new beginning.  As a result, while the EFM works to make a public entity financially stable and secure, the communities chamber of commerce, DDA or other community groups should create a strategy to enhance  the city's image. That way,  when an EFM's work is completed and the Mayor or Superintendent are given the responsibility once again to manage the public entity,  their image will not just be maintained, it will be enhanced due to a strategic communications plan.

Daniel Cherrin is an attorney specializing in protecting and enhancing the reputation of people and organizations and practices in the areas of public affairs, strategic communications, public policy dispute resolution and crisis management, with Fraser Trebilcock. He is the former Communications Director for the City of Detroit and Press Secretary to Mayor Kenneth V. Cockrel, Jr.  Daniel also serves as the spokesperson for Mackinac Island and The Ann Arbor Art Fairs.